Chapter 6. INDEX NUMBERS Q.4. Distinguish between 2. Price Index and Quantity Index

Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board 

 

Chapter 6. INDEX NUMBERS

Q.4. Distinguish between

2. Price Index and Quantity Index.

Price Index	Quantity Index
1. Price Index Number is calculated by two methods, namely a. Simple Aggregative Method b. Simple Average of Price Relative Method	1. Quantity Index Number is calculated by two methods, namely a. Weighted Average of Price Relative Method b. Weighted Aggregative Method
2. Price Index number is also known as the Unweighted Index Number.	2. Quantity Index Number is also known as Weighted Index Number.
3. Price Index Number takes into account the prices of the commodity of the base year as well as of the current year.	3. Quantity Index takes into consideration the weights of goods assigned according to the quantity.